1. To-Increase Dynamics 365 for Finance & Operations
  2. Advanced project management
  3. Flows

Review bid value and markup
Activity Flow

You can review and modify the bid values and bid rates, as calculated by the WBS calculation. You can, for example, compare the bid value with the calculated markup.

You can change the bid value in these ways:

  • Add a contingency.
  • Apply an index.
  • Manually change the bid rate or bid value.

Project manager Project manager Start Start Add contingency Add contingency To each task, you can add a contingency. A contingency is an additional value on top of the calculated value, without adding an extra estimate line to a task. You can also use the contingency to, for example, add a risk or a margin.The relevant calculations are:Bid value = Calculated value + Contingency + IndexCalculated value = sum of Total sales prices of all estimate lines for the task. Procedure 1. Click Advanced project management. 2. Click Project quotation. 3. In the list, click the link in the selected row. 4. Click Advanced WBS. 5. Click Edit. 6. In the list, find and select the desired task. 7. Click the Calculation tab. 8. In the Contingency field, enter a number. 9. Click Save. Notes If you add or change a contingency, the bid rate and bid value are not locked automatically.A contingency is considered if the bid rate and bid value are unlocked when you add the contingency. Calculate index Calculate index To each work breakdown structure line, you can apply an index. If you apply an index to a project line or to a task with sub-tasks, the index is applied to all underlying tasks.An index is an additional percentage on top of the calculated value, without adding an extra estimate line to a task.You can also use the index to, for example, add a risk or a margin.The relevant calculations are:Bid value = Calculated value + Contingency + IndexCalculated value = sum of Total sales prices of all estimate lines for the taskThe index is applied to the sum of the Calculated value and the Contingency. Example: Calculated value=100, Contingency=20, Index=10%. The 10% index is applied to 120. So, the bid value is 132.If already an index is applied to a task, an additional index considers the already available index. Procedure 1. Click Advanced project management. 2. Click Project quotation. 3. In the list, click the link in the selected row. 4. Click Advanced WBS. 5. Click Edit. 6. In the list, find and select the desired record. 7. Click the Cost and revenue tab. 8. In the list, find and select the desired record. 9. Click Calculate index. 10. In the Index (%) field, enter a number. 11. In the From date field, enter a date. 12. Click OK. Notes If you apply an index, the bid rate and bid value are not locked automatically.An index is considered if the bid rate and bid value are unlocked when you apply the index.You can remove applied indexes. To do so, click Reset index on the Cost and revenue tab. If you enter a From date, only the indexes are removed for the tasks that start on or after the From date. Review bid rate and bid value Review bid rate and bid value WBS calculation updates the bid rate and bid value for each task.The relevant calculations are:Bid value = Calculated value + Contingency + IndexCalculated value = sum of Total sales prices of all estimate lines for the taskBid rate = Bid value / Forecast quantity in Scheduled unitCalculated rate = Calculated value / Forecast quantity in Scheduled unitYou can manually change the bid rate and bid value. If you do so, these are automatically locked.If the bid rate and bid value are locked and you run the WBS calculation:The bid rate and bid value aren't changed if: Prices are changed.You add a contingency.You apply an index.The bid value is changed if quantities are changed on a task. In this case, the locked bid ratio is used to calculate the new bid value.You can unlock the bid rate. To do so, on the Advanced WBS page, on the calculation fast tab, clear the Lock bid rate check box. Procedure 1. Click Advanced project management. 2. Click Project quotation. 3. In the list, click the link in the selected row. 4. Click Advanced WBS. 5. Click Edit. 6. Select an activity. 7. Click the Calculation tab. 8. In the Bid value field, enter a number. 9. In the Bid rate field, enter a number. 10. Click Save. 11. Usually, you run the WBS calculation for the whole WBS. To do so, select the root node (project) of the WBS. You can run the WBS calculation for another node. 12. Click Run WBS Calculation. 13. Click Save & Close. End End Add contingency Add contingency Apply index? Apply index? Yes No Yes No

Activities

Name Responsible Description

Add contingency

Project manager

To each task, you can add a contingency.

A contingency is an additional value on top of the calculated value, without adding an extra estimate line to a task.

You can also use the contingency to, for example, add a risk or a margin.


The relevant calculations are:

  • Bid value = Calculated value + Contingency + Index
  • Calculated value = sum of Total sales prices of all estimate lines for the task.

Calculate index

Project manager

To each work breakdown structure line, you can apply an index.

If you apply an index to a project line or to a task with sub-tasks, the index is applied to all underlying tasks.

An index is an additional percentage on top of the calculated value, without adding an extra estimate line to a task.

You can also use the index to, for example, add a risk or a margin.


The relevant calculations are:

  • Bid value = Calculated value + Contingency + Index
  • Calculated value = sum of Total sales prices of all estimate lines for the task

The index is applied to the sum of the Calculated value and the Contingency.

Example: Calculated value=100, Contingency=20, Index=10%. The 10% index is applied to 120. So, the bid value is 132.

If already an index is applied to a task, an additional index considers the already available index.

Review bid rate and bid value

Project manager

WBS calculation updates the bid rate and bid value for each task.


The relevant calculations are:

  • Bid value = Calculated value + Contingency + Index
  • Calculated value = sum of Total sales prices of all estimate lines for the task
  • Bid rate = Bid value / Forecast quantity in Scheduled unit
  • Calculated rate = Calculated value / Forecast quantity in Scheduled unit


You can manually change the bid rate and bid value. If you do so, these are automatically locked.

If the bid rate and bid value are locked and you run the WBS calculation:

  • The bid rate and bid value aren't changed if:
    • Prices are changed.
    • You add a contingency.
    • You apply an index.
  • The bid value is changed if quantities are changed on a task. In this case, the locked bid ratio is used to calculate the new bid value.

You can unlock the bid rate. To do so, on the Advanced WBS page, on the calculation fast tab, clear the Lock bid rate check box.

Activities

Name Responsible Description

Add contingency

Project manager

To each task, you can add a contingency.

A contingency is an additional value on top of the calculated value, without adding an extra estimate line to a task.

You can also use the contingency to, for example, add a risk or a margin.


The relevant calculations are:

  • Bid value = Calculated value + Contingency + Index
  • Calculated value = sum of Total sales prices of all estimate lines for the task.

Calculate index

Project manager

To each work breakdown structure line, you can apply an index.

If you apply an index to a project line or to a task with sub-tasks, the index is applied to all underlying tasks.

An index is an additional percentage on top of the calculated value, without adding an extra estimate line to a task.

You can also use the index to, for example, add a risk or a margin.


The relevant calculations are:

  • Bid value = Calculated value + Contingency + Index
  • Calculated value = sum of Total sales prices of all estimate lines for the task

The index is applied to the sum of the Calculated value and the Contingency.

Example: Calculated value=100, Contingency=20, Index=10%. The 10% index is applied to 120. So, the bid value is 132.

If already an index is applied to a task, an additional index considers the already available index.

Review bid rate and bid value

Project manager

WBS calculation updates the bid rate and bid value for each task.


The relevant calculations are:

  • Bid value = Calculated value + Contingency + Index
  • Calculated value = sum of Total sales prices of all estimate lines for the task
  • Bid rate = Bid value / Forecast quantity in Scheduled unit
  • Calculated rate = Calculated value / Forecast quantity in Scheduled unit


You can manually change the bid rate and bid value. If you do so, these are automatically locked.

If the bid rate and bid value are locked and you run the WBS calculation:

  • The bid rate and bid value aren't changed if:
    • Prices are changed.
    • You add a contingency.
    • You apply an index.
  • The bid value is changed if quantities are changed on a task. In this case, the locked bid ratio is used to calculate the new bid value.

You can unlock the bid rate. To do so, on the Advanced WBS page, on the calculation fast tab, clear the Lock bid rate check box.
Related to Notes

Review bid value and markup

 		 

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